Thorofare Capital has funded an $24,000,000 construction-completion loan for Hawthorne Life Storage, a 92,203 SF, 990-unit 100% climate-controlled self-storage facility located in Hawthorne, California.

Proceeds from the initial funding at closing were utilized by the sponsor to pay off the original construction loan, fund the project’s completion and reserve for lease-up carry costs.

The property will be managed by Life Storage (NYSE: LSI), a publicly-traded self-storage REIT, boasting a $9 billion market capitalization, that manages over 1,000 locations encompassing 67 million SF across the U.S.

Hawthorne Life Storage is well located within Hawthorne, with 165 multifamily properties, 40 retail properties, 10 office properties and 159 industrial properties located within a 0.75-miles radius. The Property is located adjacent to SpaceX and the Hawthorne Airport, with other major employers in the area including Tesla and Amazon. The Property is located 0.5-miles from the I-105 freeway, which provides east west interconnectivity. The Hawthorne self-storage market is under supplied by 131,536 SF in a one-mile radius and by 222,269 SF in a two-mile radius of the property. Average occupancy rates among competitive self-storage properties in the area is 90.3%. Additionally, as a measure of high barrier to entry, Ordinance No. 2147 in the City of Hawthorne was approved in October 2017 which added self-storage facilities to the list of prohibited uses in the commercial, industrial and mixed-use zones.

The 12-month, interest-only loan includes an extension option and an “earn-out” upon certificate of occupancy.

The sponsor is Southwest U.S.-based, private real estate investment firm with interest in over a dozen self-storage facilities across under-supplied, high barrier-to-entry markets in the U.S.